Discussion
A number is increased by 10% and the result is then decreased by 10%. Compared with the original, the final value is:
Answer: B
The net multiplier is \(1.1 \times 0.9 = 0.99\), a 1% decrease. The rises and falls do not cancel because the 10% reduction is taken from the larger, increased amount. For any percentage \(p\), an increase then a decrease leaves a net loss of \(\dfrac{p^2}{100}\) per cent.
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